Corporations will continue facing steeper travel costs through the remainder of 2026 before pricing begins to moderate in 2027, according to a new report from the Global Business Travel Association (GBTA) and travel management company ALTOUR. While business travel isn’t necessarily slowing down, the costs are definitely being felt.
The forecast identifies fuel and labor as the two biggest pressures in travel costs. Earlier this year, global energy markets were disrupted by the ongoing conflict with Iran closing key waterways, sending oil and jet fuel prices sharply higher and increasing operating expenses across the travel sector. Although fuel prices have moderated since those peaks, labor costs continue to climb throughout the industry, affecting airlines, hotels, ground transportation providers, and meetings and events through higher wages and continuing workforce shortages.
However, the report cautions that costs are unlikely to return to previous levels, as many of the factors driving higher prices have become long-term challenges rather than temporary disruptions.
GBTA notes that air travel is expected to experience the greatest pricing pressure, with global airfares forecast to increase 4.7% over 2025 and economy fares projected to rise 8.7%. Premium-cabin fares could rise even more sharply due to continued aircraft shortages, delivery delays, and strong demand. Hotel rates are also expected to increase globally, though at a more modest pace as new hotel development helps ease some pricing pressure.
GBTA CEO Suzanne Neufang
While chauffeured transportation was not discussed in the report, rental cars were. Car rental, the largest component of managed ground transportation, saw rates decline in 2025. Average rates are forecast to increase 3.6% in 2026 to $46.50 per day before dropping 0.9% in 2027 to $46.10.
The report reinforces what many companies in this industry have experienced firsthand over the past several years: rising labor expenses, economic pressures, and, of course, fuel volatility.
"Business travel remains a powerful indicator of business confidence," said GBTA CEO Suzanne Neufang about the report. "Companies continue to invest in face-to-face connections, customer relationships, and growth despite higher costs and greater complexity. Business travel may need to weather more uncertainty through this year. In this environment, a well-managed travel program is essential.”
While primarily focused on corporate travel buyers, its findings point to broader business environment factors that are spiking overall travel costs, even as inflation begins to moderate. Despite those headwinds, the outlook remains positive for business travel demand. Companies continue to prioritize in-person meetings and customer engagement, signaling continued demand for travel services even as budgets remain under pressure.
Looking ahead, GBTA says travel buyers—and by extension, the suppliers that serve them—should plan for a future in which higher operating costs become the norm rather than the exception.
The full report is available for download here.
Visit gbta.org for more information.
[08.03.26]
